NEW YORK (WCBS 880) — As we approach the holidays, there is some good news for drivers in the Northeast: Gas prices are falling.
While average prices in New Jersey and New York are around $3.85, and those in Connecticut and Pennsylvania are close to $4, these prices "are going to come off dramatically," according to Tom Kloza, Chief Oil Analyst and Global Head of Energy Analysis at the Oil Price Information Service, a Maryland-based price reporting agency acquired by News Corp. earlier this year.
"I think you'll expect to see 25 to 50 cents in price drops between now and, let's say, the beginning of December," which Kloza, the "Dean of Oil" said in the oil business is considered "pretty much light speed."
Kloza said the New York City area could even see gas prices at $2 in January as demand for gasoline falls.
"The one thing you have going for you in January, particularly in the Northeast, is that people really cut back on driving, and gasoline demand drops by about 15% in January versus July," he added.
He also said that there is an indication that gas prices will fall "almost everyday" over the next 60 days.
According to Kloza, gas prices peaked due to constraints in Russian crude and Russian oil, and there was also a perception that a recession was "not in the cards."
"[One] of the reasons you're seeing weak prices right now is the fear of a recession — perhaps not in the United States, but certainly in Europe — and certainly a slowdown and closure in [China], the great economy that may not reopen until April in the northeast," he continued.
Unless your car runs on premium gas, Kloza believes the region will not see $4 gas.
High diesel and heating oil prices are still a concern to him, despite the fact that costs have fallen by about 50 cents from their peak.
"it's a pretty good way to start the holiday break," he added.
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